Jim Cramer Says He is "Not a Fan of QuantumScape"

QuantumScape Corporation (NYSE:QS) is one of the stocks highlighted by Jim Cramer in the lightning round. A caller asked Cramer’s opinion on the stock during the lightning round, and in response, he said:

“I’m not a fan of QuantumScape. I don’t think they have the horses. I don’t like companies that continue to lose money. It’s just not my style.”

QuantumScape Corporation (NYSE:QS) develops solid-state lithium-metal batteries designed to boost performance and safety for electric vehicles and related applications. During a July episode, Cramer said that the company’s battery has “captured the fantasy of retail investors,” as he commented:

“Now you’ve got, oh hey, you’ve also got… the stocks that make better electric vehicles like the back-from-the-dead QuantumScape, which makes a new kind of battery that’s captured the fantasy of retail investors. Although that wasn’t enough to prevent the stock from plummeting over 14% today.

Although even with that decline, the stock’s almost tripled over the past month, as have many of these stocks. These same people will buy anything quantum… Why these? Well, maybe the better question is, well, why not? If you’re an individual investor, you don’t have much information about how stocks work longer term. It’s pretty easy to play this game, and it is a game.

We know there are parlays in gambling where you have to pick two or more events, and all have to be correct for you to win. The payouts can be big if your parlay hits, but if any bet loses, you lose the whole thing. These are pretty similar, except you tend to win all three. In many ways, gambling on PARC is a much fairer, better game, but it is a game nonetheless.”

While we acknowledge the potential of QS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.